1.
A New Age in Patent Liquidity
New Opportunities for Entrepreneurs
An Inventor/Entrepreneur Perspective
Richard Reisman
Teleshuttle Corporation
rreisman [at] teleshuttle [dot] com
February 15, 2012
1
Copyright 2012, Teleshuttle Corp. All rights reserved. / Patent pending

2.
A Report from the Trenches
(Sell-side – Inventor/Entrepreneur)
One fortunate odyssey
through the Kafkaesque
wonderland of patents…
• From entrepreneurship to “Plan B”
• Getting + developing patents
• Partnering for commercialization
• Sales / Licensing / Litigation
• Lessons?
2

3.
Reisman/Teleshuttle Background
• Diverse Media/IT business roles – over 4 decades
– Manager, consultant, strategist, programmer
• 20 Patents + dozens pending
7 Portfolios – starting 1994
– One litigated 2004-6, sold 2006, controlled by IV
– One sold 2009 to RPX
• Teleshuttle Corp.
– Started: software/services ‘94-96 (a “PE”)
– Now: innovation “studio”
seeking strategic partners and/or IP sales (an “NPE”?)
3

4.
Teleshuttle Corp, Patents, and “Plan B”*
• Valuable new approach to online services
– Smart clients, “push” technology
– Create a new kind of platform business
• Applied for patent before launching company (1994)
– Patent as protection …+ “Plan B” hedge
– “Practicing Entity” 1994-96, limited success
– Shift to Plan B (“NPE”)
• Plan B came through (2006 – 12 years)
[*See blog: “The Six Phases of a Technology Flop” ...Patents, and Plan B]
4

5.
Commercialization Deal – BTG
My “White Knight”
• Need help to license or sell: who/how/deals/$$$
• Evaluated numerous players (1998)
• BTG
– Expertise
– Funding (direct / contingency …vs fund-raising)
– Terms
• Exclusive license to commercialize
• For revenue share (no advance, no costs, +consulting fees)
• (Milestones or reversion – BTG bought extensions, larger share)
• Good results
– Significant added value in continuations ($$$ investment)
– Little control, but good involvement
– Ups and downs, but key people came through
5

6.
…Into Patent Litigation
“The Sport of Kings”
• “Friendly” licensing talks starting 2003
– Microsoft, Apple, 2 others
– Small offers, or just “go away”/“sue me”
• Suits in 2004: Microsoft, Apple
– Discovery
– Markman stage hearings (=“claim construction”)
– Depositions: personal assault
• End 2005 looking strong, but still far apart…
– Ecstasy …maybe? – Huge win down the road?
– Agony …for sure! – More years of trial + appeal
• Grueling work, high stress, …sudden death?
• Very hard on little guy (even with funding)
6

7.
Intellectual Ventures to the Rescue!
My “Fairy Godmother”
• Magical resolution: creative, win-win deal (3/06)
– Structured / brokered by IV
• LLC buys patents – upside: future revenues from others
• IV controls LLC
• Investors in LLC fund purchase (for share in upside)
– We* get $35MM + share of future profits (drop suit)
(*Lawyers, BTG, Teleshuttle)
• Win for IP owner
– Much less than outright win at trial (10x?)
– Reasonable compensation
– Happy, quick end to long ordeal
7

8.
Sale #2 – Search Portfolio
A more “rational” path
• 4 Patents filed 2000, issued 2005-2008
– Begun with BTG (pre-filing)
– Returned by BTG before allowance by PTO
• Evidence of use 2009
• Partners to bring to market
• Sale to RPX 2009
– Very fast (5 months from evidence of use, to closing)
– Friendly, “rational”
– Not the premium price of litigation,
but low risk, no trauma
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9.
Lessons?
Plan for change, count on nothing
1. Expect changes and reversals:
– People / Priorities / Confidence
– Markets / Outlook
– Hedge your bets
2. Disclose richly + Keep prosecution open!!!*
*File continuation before patent issues or the door closes forever!
3. Partner + Choose partners with great care
Richard Reisman, Teleshuttle Corporation
rreisman [at] teleshuttle [dot] com
9

10.
A New Age in Patent Liquidity
New Opportunities for Entrepreneurs
An Inventor/Entrepreneur Perspective
Richard Reisman
Teleshuttle Corporation
rreisman [at] teleshuttle [dot] com
February 15, 2012
10
Copyright 2012, Teleshuttle Corp. All rights reserved. / Patent pending